In the past, businesses relied on personal guarantees from their employees to secure a line of credit, however today, most businesses have access to business credit cards without personal guarantees. Such cards offer a lot of benefits, including low interest rates and rewards programs, that can help businesses increase their profits and reduce their risks. In this article, we’ll explore the different options for business credit cards that don’t require personal guarantees.
The Importance of a Good Credit Score
Having a good credit score is incredibly important as it can significantly impact various aspects of your life. From getting approved for a loan to finding an apartment or car, a high credit score can make these processes much easier. Here are 4 key reasons why you should aim to maintain a good credit score:
Faster Loan Approval: Having a credit score can help you get approved for a loan faster than if you have low credit score. Since the average loan approval time has decreased by 25% since 2007, having good credit can expedite the process.
Better Insurance Rates: If you have good credit scores, you're less likely to be denied coverage by insurers. You may also receive better rates on car and home insurance policies.
Easy Approval for Apartment or Car: Landlords and car dealers often check your credit score before approving an apartment or car. With a high credit score, you'll have a better chance of being approved and avoiding any hassles.
Professional Advancement: A good credit score can increase your chances of getting promoted at work or winning business contracts. Many companies consider an individual's credit score when making decisions about promotions or contracts.
Annual Fees Associated with High-Limit Credit Cards
High-limit credit cards can offer businesses a higher limit than standard credit here cards, however they also come with hefty annual fees. It’s important for businesses to understand these fees before deciding whether or not to use a card with a high limit.
Chase’s 524 Policy
Chase offers the 524 policy, which allows customers to apply for a business credit card without providing a personal guarantee. If approved, the card requires $500 minimum deposit, but no personal guarantee is required. This policy is different from other major banks, making it ideal for customers who are uncomfortable with providing a personal guarantee.
Capital One’s Involvement with All Three Credit Bureaus
Capital One offers a variety of different credit cards that require no personal guarantee from the customer. These cards eliminate some of the risks associated with using a credit card, and they’re accepted by many different retailers. Capital One also offers great rewards programs that can help businesses save on their purchases.
The financial institution known as Capital One is currently involved with all three credit bureaus. Through offering a variety of different credit cards that don’t require personal collateral from customers, Capital One has succeeded in eliminating some of the dangers connected to utilizing a credit card. Furthermore, these cards are widely recognized by many different retailers, and come with great rewards programs that can assist businesses cut costs for their purchases.
One of American Express’s most popular cards is the Platinum card, which does not require a personal guarantee, but comes with a hefty yearly fee of $695. However, the perks and benefits associated with this card are worth the investment. These benefits include, reimbursement for travel expenses, access to exclusive events, and more. Similarly, the Black card from American Express also does not require a personal guarantee, and arrives with a substantial annual fee. But, the benefits that come with the Black card, such as free airport lounge access, reduced rental car rates, and more, may easily offset the cost of the annual fee.
In case you don’t require a personal guarantee, consider the Barclays Black Card might be a great choice. This card provides competitive interest rates, rewards points that can be used towards travel or other purchases, and an automatic payment feature that makes it convenient to pay bills and other debts quickly.
In conclusion, businesses have many options when it comes to credit cards that don’t require a personal guarantee. These cards offer different advantages, so it’s crucial for businesses to conduct thorough research and choose the option that most meets their needs.